*** The Health Care Programs Manual (HCPM) has been replaced by the Minnesota Health Care Programs Eligibility Policy Manual (EPM) as of June 1, 2016. Please refer to the EPM for current health care program policy information. ***
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Effective: June 1, 2011 |
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20.05.05 - Garnishment and Other Income Withholding |
Archived: June 1, 2016 (Previous Versions) |
A garnishment or seizure of income is a withholding of an amount of earned or unearned income to satisfy a legal debt or obligation.
Income from a public assistance source that is withheld to repay a prior overpayment from that same source may affect how income is counted for Minnesota Health Care Programs. An overpayment occurs when a person or household receives benefits greater than the amount for which they are eligible.
Note: Do not apply the provisions in this section when using a long-term care (LTC) income calculation.
MinnesotaCare and MA Method A.
MA Method B, MA-EPD, and Medicare Savings Programs.
Count income that is withheld from earned or unearned income to repay a legal debt or obligation.
Example:
Penny has earns $200 each week from her job at a restaurant. The restaurant withholds $50 per week from her paycheck due to a court-ordered garnishment for an unpaid credit card debt.
Action:
Count the entire $200 Penny earns each week as gross income. Do not deduct the $50 garnishment from her gross wages.
Do not count the amount that is withheld from income to repay a prior overpayment of benefits made by the same income source.
Example:
Roger is entitled to a VA payment of $400 per month. $150 is withheld to repay a prior VA overpayment.
Action:
Only count the $250 Roger actually receives as available unearned income.
MA Method B, MA-EPD, and Medicare Savings Programs (MSP)
Count income that is withheld from earned or unearned income to repay a legal debt or obligation.
Do not count income that is withheld from unearned income if both of the following conditions are met:
l The income is being reduced to repay a prior overpayment from the same source; and
l The overpaid amount was previously counted as unearned income for MA eligibility.
Example:
Larry has received MA for two years. He reports that his $300 per month VA check has been reduced by $100 to repay an overpayment incurred one year ago while he was receiving MA.
Action:
Only count the $200 that Larry receives. Do not count the $100 being withheld to repay the overpayment.
Example:
Mildred applies for MA for the first time. Her RSDI benefit of $500 has been reduced by $30 to repay a prior overpayment.
Action:
Count the full $500 RSDI benefit as available because the overpayment occurred before Mildred received MA.